Taxes owed to the Canadian Revenue Agency (CRA) are usually considered as unsecured credit and are able to be discharged in a bankruptcy with exceptions. The exceptions are;
- the tax liability is under 200,000 dollars
- the tax liability is more than 75% of your unsecured debt
Where the bankrupt reaches these thresholds the matter must be brought before a judge, who will decide upon the conditions for the debt before it may be discharged, which may included making a payment towards the debt.
While there is outstanding taxes owing the CRA can withhold payments for:
While there are taxes owing the CRA can garnishee any paycheque to give notice to the bank to have bank accounts seized or payments taken from.
Where you believe that you have outstanding taxes owing and you own property, it’s very important that you contact our offices to discuss your situation BEFORE the CRA register a lien.